Japan’s growing interest in developing a bigger role in the global copper market. It can do so by investing in the Reko Diq copper mine project in Pakistan’s southwestern Balochistan province. Warnings are increasing that we may face a copper supply crisis in the next few years. By the beginning of 2026, the Japan Bank for International Cooperation (JBIC) is likely to complete its largest loan ever for the project.
The Reko Diq project, which encompasses both copper and gold mining, has captured the interest of various Japanese entities, including Komatsu, a leading equipment manufacturer. Komatsu will provide critical equipment for the mine’s construction and ongoing mining activities. This will expedite the extraction process and ultimately allow us to unlock the region’s abundant mineral resources.
Copper is a strategic and critical mineral in today’s high-tech world and economy. This is particularly true in electrical, construction, and renewable energy industries. Japan is proactively facing up to increasing global demand and upcoming supply cuts. Its commitment to the relatively new Reko Diq project demonstrates a smart strategy of balancing a secure pipeline of resources for long-term profitability.
The landscape around the Reko Diq site is characterized by its rugged terrain, which poses both challenges and opportunities for mining operations. The region is home to abundant natural resources. If we can successfully manage these assets, we can do our part to enhance local economic development and contribute to meeting Japan’s growing need for copper.
The JBIC’s involvement in the project underscores Japan’s long-term strategy to invest in international mining ventures that align with its economic interests. One key tool is JBIC, which gives financial support so Japanese companies can secure necessary raw materials. Further, it arms the U.S. with development infrastructure to counter Chinese influence in key partner countries.